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FINAL DRAFT Webinar Presentation With Notes

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    Welcome and thanks for attending todays webinar, "How Do I Get There From Here?

    Demystifying Environmental Compliance."

    I'm Bob McIlvaine, Founder and President of The McIlvaine Company. I'll bemoderating the webinar on behalf of Neundorfer, Inc., experts in helping utilities and

    industrial companies develop pollution control and energy efficiency strategies.

    Neundorfer has also invited experts from several business partners to participate.

    At this point, Id like to ask everyone dialed in to please mute your phones to avoid

    picking up any background sounds.

    I'd like to start by introducing the five experts who will be talking about

    environmental compliance, and give you a brief overview of what we'll be covering

    during this one-hour webinar.

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    The webinar starts with an overview of the holistic approach to regulatory

    compliance.

    First, Mike Neundorfer, owner and CEO of Neundorfer, will explain what the holisticapproach is and how its used to make confident decisions based on analysis of

    critical uncertainties and predetermined factors.

    Next, Jeremy Timmons, Chemical Engineer at Neundorfer, will talk about techniques

    for successful goal assessment.

    Then, wrapping up the first section of this webinar, Marlin Anderson, Senior

    Environmental Consultant at Neundorfer, will share insights about the importance ofbaseline analysis.

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    The second section of todays webinar focuses on aspects of regulatory compliance

    youll need to consider when applying the holistic approach.

    First, Jeremy Timmons from Neundorfer will talk about fuel selection.

    Next, Stephen Storm, Director of Business Development & Technology Advancement

    at Paragon Airheater Technologies, will discuss factors involved in fuel preparation

    and the combustion process.

    Then, John Cavote, Chairman of the Board at United Dynamics Corporation, will talk

    about heat transfer.

    Next, Marlin Anderson from Neundorfer will discuss compliance considerations

    related to environmental control equipment on the back end.

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    Tying all this together, Mike Neundorfer will review the holistic approach and why

    taking a big picture, systems view results in high-performing, low-cost, flexible

    possibilities.

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    Finally, we'll wrap up the webinar with a question and answer section. This is your

    chance to talk directly with the experts and get your questions answered.

    You can submit your questions at any point during the webinar by using the chatfeature. Select Answers from the list of participants and send in your comments or

    question.

    [ Demo ] Or, ask your question directly during the Q&A by un-muting your phone.

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    I appreciate everyones participation this morning both those presenting and those

    listening.

    We intend to respect your time by ending on time and by sharing information thatwill be useful to you.

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    What we dont know is

    What details will be included in the new regulations?

    What will be deadline for complying with new regulations?

    So the question is: how can we add value when we dont know what the new regulations will entailand when theyll take effect?

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    What we do know is

    New regulations are coming

    New regulations will be more aggressive than existing ones, specifying limits for multiple pollutants

    Timeframe for compliance will be 3-5 years from enactment

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    This morning we will discuss

    process

    planning

    and connected systems .not specific solutions.

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    1. Resist the rush to find a quick, simple solution

    2. If a simple solution exists (unless it is to shut down the process or handily switch to gas firing), itslikely more expensive and higher risk than a planned, elegant approach.

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    An elegant approach to compliance is based on

    1. Knowledge of baseline operation and emissions

    2. Understanding the sensitivities of baseline operation an demission value to changes in equipment

    and operating variables 3. Collaborative action to create scenarios that consider all reasonable possibilities, their costs, risks,

    and affect on the rest of the system.

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    The comprehensive nature of new regulations create opportunities for:

    1. Improving thermal efficiency

    2. Improving operational efficiency

    as we move to reduce emissions.

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    How do we leverage this opportunity?

    Understand, test, measure and model current equipment and process

    Understand options

    Understand sensitivities ofothermal performance

    opollution generation

    opollution abatement

    related to current equipment and its operation.

    And then

    use the test data to build, link and validate subsystem performance models.

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    During this short presentation today, my goal is to provide a brief overview of why

    broad based compliance strategies produce the most effective results. (CLICK)

    We will also cover some initial phases or techniques that should be considered.(CLICK)

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    Why do broad based (holistic) compliance strategies produce the most effective

    results?

    We find that a Comprehensive analysis of the goals, constraints and opportunitiesthat surround any compliance effort produces: (CLICK)

    Robust decisions based on a broad spectrum of information (CLICK)

    Strategies that are flexible to handle future challenges (CLICK)

    with relatively inexpensive contingencies or margins. (CLICK)

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    We can see in this example how the first level of investment produces the greatest

    improvement. (CLICK)

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    Equal, subsequent investments produce smaller gains. (CLICK) (CLICK)

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    In this example, we predict that a significant effort will be required to achieve a 15%

    improvement.

    If this improvement level coincides with a target or limit that must be achieved, it isreasonable to invest more in order to provide margin. (CLICK)

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    In this case, however, a 33% increase in investment will be required to produce a

    small margin. (CLICK)

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    In this example, executing 3 different improvement tracks to lesser degrees allows us

    to achieve the same 15% combined improvement at a much lower level of

    investment.

    Furthermore,, contingency plans, margin and flexibility for future challenges are less

    expensive because we are on steeper segments of each curve.

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    When we combine the 3 separate improvement tracks into a single investment versus

    improvement relationship we find that the multi-track strategy is superior to a single

    track approach. (CLICK)

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    The question is: How do we begin the process of developing these improvement

    tracks and determining which ones to invest in and to what degree. (CLICK)

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    We have found that the initial steps for any improvement effort are the most critical.

    This is where individuals and teams have the most influence on the future direction

    of a project.

    The important steps involve:

    Focusing attention on the situation (CLICK)

    Discovering possibilities (CLICK)

    and creating forward movement (CLICK)

    We execute these steps using process of Strategic Inquiry.

    Strategic Inquiry is a process in which we first identify the key questions surroundingthe activity.

    We then prioritize their importance, decide which ones to examine first and to what

    degree. (CLICK)

    Involvement of a diverse group of people is important because we want to get abroad perspective of input in these initial steps so that we are comprehensive in our 2

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    The first step is to focus everyone's attention on the situation.

    We use questions such as these to extract valuable information from the team and

    provide a foundation for the effort.

    A question a simple as What are we try to do?, when asked to a

    diverse group of individuals will produce a set of unique and valuable responses.

    As the individual views are captured, a shared, broad, understanding of the situation

    emerges. (CLICK)

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    Step 2 involves the discovery and examination of the possibilities

    The goal of this step is to generate a comprehensive list of possibilities to for future

    exploration.

    This is also a good conversation to have with a diverse group.

    Many times maintenance people or performance engineers have projects in process

    that would also benefit a compliance effort.

    Anything that improves combustion performance or unit efficiency will generallyhelp. (CLICK)

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    Finally, it is critical to create momentum.

    Which questions are the most important to investigate?

    This goal of this step is to provide focus and produce action. (CLICK)

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    OK, so what is the value of starting a compliance journey in this manner? (CLICK)

    We believe that the process facilitates alignment of all stakeholders with goals, scope

    and constraints of the compliance effort. (CLICK)

    The process also eliminates paralysis by creating positive momentum, action plans

    and the framework for contingencies. (CLICK)

    For any improvement effort, establishing a set of comprehensive metrics with

    proper measurement and evaluation methods is a crucial step. Dr. Marlin Anderson

    will now discuss these issues in more detail. (CLICK)

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    1.This process starts with the generation of linked baseline data. We are used to doingemission testing that focuses on the stack measurements and, if we are lucky, the testrecords include some fuel and maybe some rudimentary boiler operating data.

    2.The stack test data we have relied on in the past needs to be expanded to include everyaspect of the system at the time of test including things like fuel analysis, fuel preparation,combustion parameters, ash LOI, and operating data with condition of the boiler anddownstream equipment.

    3.The data needs to be linked in time to provide input and validation for performancemodels.

    4.Performance models are then used for scenario development.

    5.Scenarios are evaluated for cost and risk and the lowest risk and cost compliance scenariois implemented.

    6.This whole process takes a new approach of well planned, and facilitated meetings withpeople with responsibilities ranging from fuel purchase to operations, maintenance, and backend equipment responsibility.

    7.It is especially difficult to hold back from the rush to solution while the plan for generatinglinked baseline data is executed and scenarios are discusses and evaluated.

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    Key Points

    Any Approach to Combustion, Boiler Efficiency and Environmental performance

    should encompass a holistic approach.

    This approach should evaluate the entire system evaluation including thecondition and performance of the auxiliary equipment for the plant.

    In addition, fuel quality, cycle performance and the firing system together have a

    huge impact on a plants overall thermal efficiency and ultimately the

    environmental performance of the unit.

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    Key Points

    Fuel Selection should also be considered when evaluating plant operations,

    reliability, efficiency and environmental impact.

    With solid fuel firing, a small change in the sulfur and iron in the fuel ash can havea significant impact on boiler reliability especially with staging combustion for

    NOX control.

    Considering that Ash chemistry and slag propensity are also influenced by the %

    of ash and/or the problematic mineral ash constituents, these must be taken into

    consideration when determining a plants operational parameters.

    Other variables such as Hydrogen and moisture can also have a significant impact

    on the efficiency, flue gas volume and heating value of the fuels.

    On a pulverized coal unit, particle sizing and quality which can easily enhance ordecrease lower furnace heat absorption which is vital to heat exchange process of

    the cycle.

    From an environmental stand-point, the Nitrogen, Sulfur, Carbon to Volatile

    Ratios, Ash quantity, Resistivity, Ammonia slip, dew-point, etc. - - all can have a

    major influence on environmental performance output as well as Long Term

    Reliability of the Entire System.

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    Key Points

    As discussed in the previous slide, it was noted that the quality of the fuel can

    have an impact of the Ash chemistry..

    In our industry today, the common usage of chemical injection and sorbentsupstream or downstream of the airheater can lead to major challenges which

    can exacerbate performance issues even further.

    For example, the conversion of the sulfur oxides to SO3 has a tremendous impact

    on the acid dew-point of the combustion flue gas and can results with plugging

    and/or corrosion of the airheater.

    In addition, slagging and fouling within the boiler can lead to flue gas

    stratifications impacting a units heat transfer as well as plugging of and SCR, ABS

    deposition at the airheater, ductwork or perforated plates which were intended

    to distribute even flow profiles of flue gas to the particulate collection equipment.

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    Key Points

    If the airheater becomes chocked or overwhelmed with air in-leakage from the

    boiler, this c an impact the dynamics of the entire system and/or limit the output.

    Obviously this illustration is not drawn to scale. However, its intent is to relate

    the airheater as being the intermediary between the boiler and the air pollution

    control equipment.

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    Key Points

    As compared with the boiler components, a typical regenerative airheater has a

    significant amount of heating surface in a small area.

    Each 30-40 degrees of temperature at the airheater outlet can influence the

    efficiency by ~1% and again, making the airheater typically responsible for more

    than 10% of a units overall thermal efficiency.

    However, thermal efficiency is only the beginning.

    If a boiler has a significant amount of air in-leakage and/or air leakage at the

    airheater, this impacts the combustion process, particulate sizing, concentrations

    of carbonaceous ash and also velocity distribution an corrosion and erosion

    through the heating elements of the airheater itself. After the airheater, a secondary effect is the corresponding high velocities and

    pressure differentials through the precipitator..

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    Key Points

    Just to illustrate an example of a Holistic Evaluation and approach to unit

    performance, in a recent best practices demonstration completed in Asia, I was

    directly involved with a project where the opportunities at the boiler, turbine andoperational performance improvements could reduce CO2 emissions in the

    magnitude of 124,000 metric tons annually for one 200 MW unit alone.

    Many of the improvements made during the program were considered low

    hanging fruit and ultimately resulted in not only improved emissions, but also

    fuel savings making a holistic approach to performance evaluation a Win for

    everyone.

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    After creating reliable subsystem performance models, we can use them to

    understand options for changing proactive and then reactive elements of the plant

    system and begin to input riskand costinto the models.

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    Thanks, Mike. We now open the webinar up to your questions. Heres a review of

    how to submit questions using the chat feature. You may also now un-mute your

    phone and ask a question directly.

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    Thanks everyone for your participation and some great discussion. If you asked a

    question that didnt get answered, we will be get back to you soon to continue the

    conversation. In the meantime, Neundorfer's online Air Pollution Control Compliance

    web page is a great resource to learn more about environmental compliance.

    The entire webinar is being archived and will be available within the next couple days

    on Neundorfers Compliance web page.

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    Here is contact information for the experts who presented information during the

    webinar, so you can get in touch to learn more. Jeremy, Stephen, John, Mike and

    Marlin welcome your calls and e-mails.

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    We're planning another Neundorfer-sponsored webinar soon to build on what was

    discussed today. The second webinar, "The Time to Start is Now! Connecting

    Operating Data with Compliance Results," will have a date set soon, and we'll let you

    all know more details then.

    Also, next week Neundorfer and its holistic approach business partners are hosting a

    special learning event in Willoughby, Ohio. The MACT Scenario Planning Workshop is

    an opportunity to share ideas with your peers and gain insights about how to address

    critical uncertainties surrounding air pollution control regulatory changes. We hope to

    see you there.

    Thanks everybody, and have a great day!


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